The big three will be not be accommodated in the same fashion

The "big three" will be not be accommodated in the same fashion. After a week of parliamentary hearings, where seen patterns of three heavy goods vehicles from Detroit General Motors (GM), Ford and Chrysler renounce their jets private benefit of hybrid vehicles to plead their case to Washington, the hope of a stay is specified this weekend at the Congress. The threat of a bankruptcy that would precipitate the whole of the automotive sector in chaos, with 2.5 million jobs threatened, Democrats are reached, Saturday, in an agreement in principle with the Bush administration on a $ 15 billion oxygen balloon that could be voted tomorrow. GM and Chrysler, the two manufacturers the most sick, could take their deadlines to March 2009, while Ford, whose survival is less threatened, patienterait a little. "The disappearance of the American automobile is not an option," said Barack Obama, warning however that any assistance would be linked to a severe restructuring yesterday. "We must have an auto industry that understands that it cannot continue to work in the same way", he said at a press conference. "If the officials currently in place ...". "do not want to make difficult choices and adapt to new circumstances, then they should go" he added.

The democratic speaker of the House, Nancy Pelosi, confirmed the existence of a broad consensus for "limited and assistance in the short term" to the automotive industry as early as this week, the resumption of parliamentary proceedings in the Senate today and tomorrow in the House.

A "car czar".

The White House has confirmed the existence of "constructive discussions" with the Congress. Parliamentary source, Democrats would be willing to embrace the principle of emergency aid levied on the $ 25 billion (about EUR 20 billion) already allocated to the development plan of energy efficient vehicles, adopted in September. Initially combated by the Democrats, this solution, which has always had the favor of the Bush administration, has the advantage of allowing to quickly unblock the money claimed by GM and Chrysler to pass the Cape of the end of the year. In contrast, Ford, which has requested a $ 9 billion credit line but without making it a matter of survival, might have to wait until the implementation of a plan to help more consisting of the new administration Obama next spring.

"The Congress will focus on the fact that any aid measure involves a rigorous control over the use of these resources to ensure the viability and competitiveness long-term U.S. automobile industry," said Nancy Pelosi. A "car czar" position, depending on the Department of trade, could also be responsible for overseeing the restructuring. The rallying of the Democratic majority in the solution advocated by the Bush administration is explained in part by the shock created by the new thrust of unemployment (with 533.000 jobs deleted in November). The hypothesis of a "ball of oxygen" to automakers said everything just to requests for emergency assistance by GM (10 billion) and Chrysler (4 billion) to avoid being run out of cash in early 2009. It is still far from the need for funding of $ 34 billion posted by the "big three". In total, including 25 billion of concessional loans granted by the Department of energy, the amount of the aid claimed by reaches automotive now 55 billion. Not to mention the 5 billion requested from the Canadian authorities to restructure activities in Ontario...

The Chrysler bankruptcy option

The idea of the single "stay" is however no unanimity in the Congress. Some Republican senators would have preferred that aid is more stringent conditions to the unions. Others are surprised that Cerberus investment fund, which took over 80 percent of Daimler Chrysler in 2007 for $ 7.4 billion, does not itself in the recapitalisation of the constructor. But, for most of the parliamentarians, everything is better than the spectre of Chapter 11, more and more threatening.

Chrysler has recognized Friday have already given, several weeks ago in the law firm Jones Day a mission of exploration on "the alternative to a bankruptcy warning." According to Bloomberg, GM would have, he also hired the firm Weil, Gotshal & Manges in the case where... But, according to some experts, the cost of a bankruptcy would be twice higher than that of a rescue for the public community. On the hypothesis of a solution of agreement with creditors ("prepackaged bankruptcy"), mentioned a few days ago, it was found "unworkable and highly unlikely" by the President and CEO of Chrysler, Robert Nardelli.